Liverpoolandcotton

This website is dedicated to the history of the Liverpool cotton trade and market

As a result of Liverpool's proximity to the world's largest cotton industry (Lancashire), in the nineteenth and early twentieth centuries, Liverpool became the world's largest cotton market - even larger than the cotton markets of cotton-growing countries, including the United States of America, India and Egypt.

The Liverpool market was supplied by dozens of merchants and hundreds of specialist cotton broking firms - with offices in and around the commercial heart of Liverpool. Cotton traders used to congregate on "Exchange Flags", behind Liverpool Town Hall. In 1907, a magnificent purpose-built cotton exchange was opened on Old Hall Street, Liverpool.

The Liverpool cotton market was the first market of any sort in the United Kingdom to trade in "futures" contracts (derivatives) with an associated Clearing House, special bank and settlement system for the payment of "differences" on contracts.

The Liverpool cotton market's prosperity suffered in the twentieth century due to war and foreign competition. Nonetheless, the International Cotton Association (the successor to the Liverpool Cotton Brokers Association and the Liverpool Cotton Association) is still based in Liverpool and remains central to world cotton trading.

This website was created by Nigel Halland contains his own, original research